New Utah Legislation Targets Prop Betting
Utah lawmakers are preparing to review a bill that specifically defines proposition betting as a form of illegal gambling under the state criminal code. Rep. Joseph Elison, the sponsor of the legislation, intends to introduce the measure during the current legislative session to address platforms that allegedly bypass existing prohibitions.
The proposed law targets bets placed on specific events within an athletic contest that do not necessarily correlate with the final score. These include individual player statistics, such as total rushing yards, as well as specific in-game occurrences.
Current state law requires geofencing to prevent residents from accessing the best sports betting sites, though some users use virtual private networks to circumvent these restrictions. Rep. Elison noted that while major platforms like DraftKings successfully block Utah-based users, other services have functioned within state lines without such restrictions.
One area of concern is related to prediction market apps overseen by the Commodity Futures Trading Commission (CFTC). These sites are financial exchanges, not traditional sportsbooks, a designation that enables them to operate in the US.
Since such organizations also come under federal control, state-level officials have limitations when trying to stop them from operating. Elison argued that although such markets resemble the mechanisms of sports betting, federal designation protects their legal status in Utah.
The bill aims to ensure that any wager on a player's or team's performance during an athletic event is explicitly recognized as a criminal violation under Utah's sports betting statutes.
NCAA petitions federal regulators
The bill arrives as concerns over prediction markets increase at the college level. The NCAA has formally petitioned the CFTC to halt college sports offerings on prediction markets until stricter oversight is established.
President Charlie Baker highlighted these concerns during a recent convention, arguing that current platforms operate without the consumer protections required of licensed sportsbooks. The association is concerned explicitly with markets involving student-athlete transfers and coaching hires, which it views as a threat to collegiate integrity.
More than 30 state attorneys general have supported the push for tighter controls, claiming these platforms functionally provide Utah sports betting opportunities under the guise of financial derivatives. The NCAA has requested the implementation of integrity monitoring and restrictions on prop markets to shield athletes from potential harassment or manipulation.
The tension between the NCAA and trading platforms escalated after reports surfaced that certain companies planned to allow wagering on transfer portal decisions. Although these specific markets were not launched, the NCAA maintains that the mere possibility of such launches necessitates federal intervention.
Legal officials from the association previously requested that platforms clarify their relationship with the governing body to avoid the appearance of official partnerships. The new petition calls for a comprehensive framework, including problem gambling education on campuses and national governing body involvement in market approvals.
Baker added that the NCAA remains focused on ensuring that any platform offering sports-related contracts adheres to the same transparency and harm reduction protocols as traditional gaming operators.
